The SME Instrument: boost your SME’s potential

A 2015-2016 annual report by the European Commission found that 99 out of every 100 businesses in Europe are SMEs and that they collectively employ two-thirds of the European workforce. With these facts in mind, it’s clear to see why SMEs are at the heart of many of the Commission’s support programmes and funding opportunities. The SME Instrument is a key player in this area and we take a closer look at what the Instrument entails in the following article.

What is the SME Instrument?

A part of Horizon 2020, the SME Instrument helps SMEs with a high level of potential to develop innovative new projects that will help them to grow both within Europe and beyond. Funding is provided to SMEs with successful applications and they benefit from a shorter time-to-investment ratio, better innovation capacity, world-class business coaching and faster growth.

What has the Instrument achieved so far?

In its first three years, the SME Instrument issued more than €882 million in funding and supported almost 2,500 SMEs. The ultimate aim is to support 7,500 SMEs by the end of Horizon 2020.

How does the Instrument work?

The SME Instrument consists of three phases and it’s recommended that SMEs start by applying for Phase 1:

Phase 1: Concept and Feasability Assessment – Idea to concept (6 months) In this phase, the SME prepares an initial business proposal and the EU carries out a feasability study to verify its viability. €50,000 of funding is available.
Phase 2: Demonstration, Market Replication and R&D – Concept to market maturity (1-2 years) In thisphase, the SME further deveops its proposal through innovation activities and drafts a more developed business plan. Between €0.5 million and €2.5 million of funding is available.
Phase 3: Business Acceleration and Support Services – Prepare for market launch In the final phase, SMEs receive business acceleration support including training as they take their project and turn it into a marketable product. No additional direct funding is available at this stage.

Who can apply for the Instrument?

Single for-profit SMEs, or a consortium of for-profit SMEs, can apply for funding under the SME Instrument. The SMEs should have a high potential for growth and innovation, and should also have strong global ambitions. All applicants needed to be legally established in the EU-28 or in a country associated with Horizon 2020.

Where can SMEs find out more and apply for the Instrument?

Interested SMEs are advised to contact their closest SME National Contact Point or Enterprise Europe Network (EEN) partner, as they will be able to provide information and guidance on Horizon 2020 and the SME Instrument. There is also useful information available online.

Want to know more about the EU’s programmes and opportunities? Why not check out our articles on the European Social Fund and Erasmus+.

Related links:

SME National Contact Point

Enterprise Europe Network (EEN) partner

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